FREMONT — An empty, weathered concrete-covered lot soon will be the site of a retail-housing development that will help transform the area near City Hall into a thriving downtown.

That is Fremont’s vision, anyway, for a4-acre, city-owned parcel at the corner of State Street and Capitol Avenue.

Developers TMG Partners and Regis Homes Bay Area have begun working with city leaders to build the so-called State Street project. They hope it kick-starts the city’s long-running plan to forge a downtown with shops, eateries, outdoor cafes and more pedestrians than cars.

The developers presented their plans at a recent council meeting, saying the development will feature 140 townhomes and condominiums on three floors above 21,000 square feet of ground-floor retail.

“Hopefully, this project will really begin the downtown that we have all envisioned,” Councilwoman Sue Chan said at the meeting.

The developers will return in the fall to present more architectural and planning details to council members, Mayor Bill Harrison said in an interview Thursday.

“They will show us then what they think they can deliver, what they envision for something that’s going to set the tone for the area,” Harrison said.

City leaders want the development to spur more projects in Fremont’s proposed downtown, a 110-acre area anchored by City Hall and within walking distance of the Fremont BART station.

“For people who have heard about these plans for year, it will actually be progress they can see,” Harrison said. “In time, they’ll see underutilized parcels transformed into an area … all Fremont residents can be proud of.”

The area has seen small but steady progress, including the opening last year of a Whole Foods store and a 300-unit apartment complex.

City leaders hope the State Street project is next.

It would be built across the street from Town Fair shopping center, where city leaders have added food trucks and a monthly art-themed event to attract more shoppers and infuse the area with foot traffic.

“I’m excited about the project,” said Melissa Fields, a travel agent who works in a Town Fair office. “They’ve been talking about doing a downtown in Fremont for 20 years and this is the first time they’re actually doing it.”